Queensland's Liberal National Party opposition says splitting up the state's power generators into smaller companies to reduce their market clout would help reduce power prices for households.
The scheme, first put forward by the LNP during the state election last year, would see government-owned corporations Stanwell and CS Energy broken up into three entities.
The two companies together control around two-thirds of the state's power capacity and deliver 80 per cent of the electricity.
Deputy Opposition Leader Tim Mander claims the move would save the average household $50 a year.
"It would mean that the 6000mW produced per year and managed by two companies would be managed by three companies," Mr Mander told reporters in Brisbane on Sunday.
"This would lead to increased competition, and the Queensland Productivity Commission and the ACCC have both said this will lead to reduced wholesale prices."
However Acting Premier Jackie Trad said the government believed the move would increase power bills, due to increased administration costs.
"Part of our decision to establish Energy Queensland was to ensure we get savings on behalf of the Queensland taxpayers in all of those corporate administration costs that we knew were just duplication across electricity companies," Ms Trad said.
The Labor government has previously directed CS Energy and Stanwell to lower its prices, which has seen lower rises in the cost of energy in Queensland than in other states.
It has also used the profits from the companies to deliver $50 rebates to households.
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